Sample Single Audit Schedules

Reference Manual Appendix 5

Appendix 5 | Page 1 Sample School District Schedule of Expenditures of Federal Awards For the year ended June 30, 20__ Page 1 Sample School District Schedule of Expenditures of Federal Awards For the year ended June 30, 20__ Page 2

Appendix 5 | Page 3 Sample School District Schedule of Expenditures of Federal Awards For the year ended June 30, 20__

Note 1- Summary of Certain Significant Accounting Policies:

The accompanying schedule of expenditures of federal awards presents the activity of federal award programs administered by the District, which is described in Note 1 to the District's accompanying financial statements, using the modified accrual basis of accounting. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards that are passed through from other government agencies. The information is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.

Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The District's policy is not to charge federal award programs with indirect costs. OR Certain of the District's federal award programs have been charged with indirect costs, based upon an established rate applied to overall expenditures. There is no other indirect cost allocation plan in effect.

Matching costs (the District's share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District's financial reporting system.

Note 2 – Sub-recipients:

No amounts were provided to sub-recipients

Appendix 5 | Page 4 Sample School District Schedule of Expenditures of Federal Awards For the year ended June 30, 20__ Note 3 – other disclosures:

No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value, and is covered by the District's casualty insurance policies.

There were no loans or loan guarantees outstanding at year-end.

Section II – Financial Statement Findings

Identify any reportable conditions, material weaknesses, and instances of noncompliance related to the financial statements that are required to be reported in accordance with paragraphs 5.18 through 5.20 of Government Auditing Standards. Assign each finding a reference number. Audit findings that relate to both the financial statements and federal awards should be reported in both Section II and Section III. However, the reporting in one section may be in summary form with a reference to a detailed reporting in the other section of the schedule. If there are no findings, state that no matters were reported.

To the extent possible, in presenting audit findings such as deficiencies in internal control, auditors should develop the elements of criteria, condition, cause, and effect to assist management or oversight officials of the audited entity in understanding the need for taking corrective action. In addition, if auditors are able to sufficiently develop the findings, they should provide recommendations for corrective action.

Government Auditing Standards provide the following guidance for reporting on elements of findings:

a. Criteria: An audit report is improved when it provides information such that the report user will be able to determine what is the required, or desired state or what is expected from the program or operation. The criteria are easier to understand when stated fairly, explicitly, and completely, and the source of the criteria is identified in the audit report.

b. Condition: The audit report is improved when it provides evidence of what the auditors found regarding the actual situation. Reporting the scope or extent of the condition allows the report user to gain an accurate perspective.

c. Cause: The audit report is improved when it provides persuasive evidence on the factor or factors responsible for the difference between condition and criteria. In reporting the cause, auditors may consider whether the evidence provides a reasonable and convincing argument for why the stated cause is the key factor or factors contributing to the difference as opposed to other possible causes, such as poorly designed criteria or factors uncontrollable by program management. The auditors also may consider whether the identified cause could serve as a basis for the recommendations.

d. Effect: The audit report is improved when it provides a clear, logical link to establish the impact of the difference between what the auditors found (condition) and what should be (criteria). Effect is easier to understand when it is stated clearly, concisely, and, if possible, in quantifiable terms. The significance of the reported effect can be demonstrated through credible evidence.

When auditors detect deficiencies in internal control that are not reportable conditions, they should communicate those deficiencies separately in a management letter to officials of the audited entity unless the deficiencies are clearly inconsequential considering both quantitative and qualitative factors.

Section III—Federal Award Findings and Questioned Costs

Identify the audit findings required to be reported by section 510(a) of Circular A-133. Where practical, findings should be organized by federal agency or pass-through entity. If there are no findings, state that no matters were reported. The auditor shall report the following as audit findings in a schedule of findings and questioned costs:

1) Reportable conditions in internal control over major programs. The auditor's determination of whether a deficiency in internal control is a reportable condition for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program or an audit objective identified in the compliance supplement. The auditor shall identify reportable conditions which are individually or cumulatively material weaknesses.

2) Material noncompliance with the provisions of laws, regulations, contracts, or grant agreements related to a major program. The auditor's determination of whether a noncompliance with the provisions of laws, regulations, contracts, or grant agreements is material for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program or an audit objective identified in the compliance supplement.

3) Known questioned costs which are greater than $10,000 for a type of compliance requirement for a major program. Known questioned costs are those specifically identified by the auditor. In evaluating the effect of questioned costs on the opinion on compliance, the auditor considers the best estimate of total costs questioned (likely questioned costs), not just the questioned costs specifically identified (known questioned costs). The auditor shall also report known questioned costs when likely questioned costs are greater than $10,000 for a type of compliance requirement for a major program. In reporting questioned costs, the auditor shall include information to provide proper perspective for judging the prevalence and consequences of the questioned costs.

4) Known questioned costs which are greater than $10,000 for a Federal program which is not audited as a major program. Except for audit follow-up, the auditor is not required under this part to perform audit procedures for such a Federal program; therefore, the auditor will normally not find questioned costs for a program which is not audited as a major program. However, if the auditor does become aware of questioned costs for a Federal program which is not audited as a major program (e.g., as part of audit follow-up or other audit procedures) and the known questioned costs are greater than $10,000, then the auditor shall report this as an audit finding.

5) The circumstances concerning why the auditor's report on compliance for major programs is other than an unqualified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards.

6) Known fraud affecting a Federal award, unless such fraud is otherwise reported as an audit finding in the schedule of findings and questioned costs for Federal awards. This paragraph does not require the auditor to make an additional reporting when the auditor confirms that the fraud was reported outside of the auditor's reports under the direct reporting requirements of GAGAS.

7) Instances where the results of audit follow-up procedures disclosed that the summary schedule of prior audit findings prepared by the auditee in accordance with §___. 315(b) materially misrepresents the status of any prior audit finding.

Audit findings shall be presented in sufficient detail for the auditee to prepare a corrective action plan and take corrective action, and for Federal agencies and pass-through entities to arrive at a management decision. Each finding should be presented in the following level of detail, as applicable:

• Identification of the federal program, award and CFDA title and number, federal award number and year, name of federal agency, and name of any pass-through entity, (CFDA numbers are usually available from grant documents or remittance advices. They can also be obtained from a searchable copy of the CFDA, at www.gsa.gov/fdac.)

• The criteria upon which the audit finding is based,

• A description of the condition found, including supporting facts,

• Identification of questioned costs, and how they were computed,

• Information to provide proper perspective for judging the prevalence and consequences of the findings, potentially including relationship to the universe and number of cases examined, in terms of dollar value,

• The possible asserted effect, to permit the District and federal or pass-through agency to determine the cause and effect of the finding,

• Recommendations to prevent future occurrences of the deficiency,

• Views of responsible District officials, to the extent practical, and

• A reference number, to allow for easy referencing of the audit findings during follow-up (frequently composed of the last two digits of the applicable year, followed by a sequential finding number).

Generally, internal control findings that are applicable to the entity as a whole should not be included in the major program findings section unless:

* The independent auditor discovered the finding during testing of major programs; and

* It is clearly demonstrated that the finding specifically affected the federal program and can identify the specific statutory requirement applicable to the finding, such as specific sections of the Circular A-133, Circular A-87, the Compliance Supplement, etc. For example, if a sample of purchase orders is reviewed and deficiencies are noted, only those deficiencies related to federal programs should be included in the section on major program findings. If an independent auditor recommends adjusting entries, the adjusting entries should be linked to violations of specific programmatic compliance requirements for the finding to be included in the major program finding section. Adjusting entries for Appendix 5 | Page 9 Sample School District Schedule of Expenditures of Federal Awards For the year ended June 30, 20__ full accrual entity-wide reporting generally are not applicable to federal programs.

Corrective Action Plan

Sample Format

Reference to Finding Control Number Each response should be referenced to the Finding Number assigned to that audit finding.

Summary of Finding(s) (optional) Describe the finding and recommendations, if any. Identify the program title(s) and CFDA number(s). Indicate if the finding is included in the prior year summary.

Statement of Concurrence or Nonconcurrence Each district should provide a statement of concurrence or nonconcurrence with the findings and recommendations. If the district does not agree with a finding, specific information should be provided to support that position.

Corrective Action The plan should provide pertinent comments on the detailed action taken or planned to correct the deficiencies in the audit findings, or a statement, as appropriate, which describes the reason(s) that corrective action is unnecessary. For planned actions, the district should provide projected dates for completion of major tasks.

Contact Person Officials responsible for completing the proposed action(s) should also be identified. Please indicate Appendix 5 | Page 10 Sample School District Schedule of Expenditures of Federal Awards For the year ended June 30, 20__ their name, title, telephone number, fax number and e-mail address, if applicable.

Summary Schedule of Prior Audit Findings

Appendix 5 | Page 11